EU R&D SCOREBOARD 2016

Benchmarking EU Industry Innovation Performance to Help Shape EU Policy

The EU R&D Scoreboard

The "EU Industrial R&D Investment Scoreboard" (the Scoreboard), published annually since 2004, monitors top EU based R&D investing companies benchmarking them with top investors located in other parts of the world. The Scoreboard is part of the European Commission’s monitoring activities to improve the understanding of trends in R&D investment by the business sector. In the context of the EU agenda for Jobs, Growth and Investment, the contribution of the business sector to reach the 3% objective for R&D intensity in the European economy is crucial. Evidence shows that most of the EU R&D gap with respect to main world competitors comes from an insufficient number of leading innovative companies in key high-tech sectors.

The Scoreboard relies on economic and financial information on the World's top 2500 companies that invested €696.0 billion in R&D –representing about 90% of the total expenditure on R&D by business worldwide. The data is collected from the latest available companies' accounts (i.e. for this year's edition usually the fiscal year 2015/16). It complements official territorial statistics (such as BERD) in the study of important questions related to companies' innovation behaviour in a global context. It is a reliable, up-to-date benchmarking tool for comparisons between companies, sectors, and geographical areas, as well as to monitor and analyse emerging investment trends and patterns.

Part 1 of 7

TOP R&D INVESTING COMPANIES BY COUNTRY

Canada
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Companies
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R&D Annual Growth
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Sales Annual Growth

Top 3 investors

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Top 3 investing sectors

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EU

Headquarters' location of EU's top R&D investors. Click on a country for more information.

  • The distribution shows a high concentration among the top five countries: Germany, France, UK, Netherlands and Italy.
  • The 590 EU companies increased R&D investment at higher rate than the world’s average, at 7.5% (mostly due to Auto and High-tech companies) while decreasing net sales by 3.6% (mostly due to oil-related companies).
  • The companies based in Germany, accounting respectively for 37.6% and 30.0% of the EU’s total R&D and net sales, made the largest contribution to the performance of the EU-590 group.

World

Headquarters' location of the world's top R&D investors. Click on a country for more information.

  • Each of the World’s Top 2500 R&D investors invested more than €21.0 million in R&D in 2015.
  • The amount of R&D investment by these 2500 companies is equivalent to more than 55% of the total expenditure on R&D worldwide (GERD) and about 90% of the R&D expenditure financed by the business sector worldwide (BERD).
  • R&D investments and economic results of companies in 2015 show important variations across countries and industries. Companies increased significantly R&D investments while showing an important decline in revenues, although, the increase of R&D was driven by high-tech industries whereas the decrease of sales was dominated by low-tech sectors, mainly oil-related industries.

Part 2 of 7

KEY FIGURES BY COUNTRY (2015/16)

Key trends Worldwide

The overall increase in R&D worldwide in 2015 (in relation to 2014) is led by the growth of companies located in the China (+24.7%) and the US (7.5%). Net sales are decreasing in all regions apart from Japan, while employment grew in every area. Considering all regions in the world, the number of employees of the 2500 companies increased by 1.3%.

Key trends EU

The 132 German companies increased R&D by 10.6% and net sales by 8.7%. These results reflect to a large extent the results in the Automobiles & Parts and also good performance in ICT and health related sectors. The other two largest member states of the EU showed a mixed performance. Companies based in the UK increased R&D by 4.1% but decreased sales significantly by 22% (The UK's sales decrease was mostly due to the decline in Oil and Mining companies, -37% and -26% respectively). Companies based in France increased modestly R&D, 2.0% and decreased net sales by 3.4%.

Part 3 of 7

TOP 10 COMPANIES

World (bn EUR)

1
VOLKSWAGEN [DE] 13.6
2
SAMSUNG [KR] 12.5
3
INTEL [US] 11.1
4
ALPHABET [US] 11.1
5
MICROSOFT [US] 11.0
6
NOVARTIS [CH] 9.0
7
ROCHE [CH] 8.6
8
HUAWEI [CN] 8.4
9
JOHNSON & JOHNSON [US] 8.3
10
TOYOTA [JP] 8.0

EU (bn EUR)

1
VOLKSWAGEN [DE] 13.6
2
DAIMLER [DE] 6.5
3
SANOFI [FR] 5.2
4
ASTRAZENECA [UK] 5.2
5
ROBERT BOSCH [DE] 5.2
6
BMW [DE] 5.2
7
SIEMENS [DE] 4.8
8
BAYER [DE] 4.4
9
GLAXOSIMTHKLINE [UK] 4.2
10
FIAT CHRYSLER [IT] 4.1
 
EU
 
US
 
Japan
 
Rest Of The World

Top R&D investors Worldwide

Among the top 10 R&D investors worldwide, there is only one EU based company (Volkswagen), and is dominated by companies located in the US (Intel, Alphabet, Microsoft, Johnson and Johnson) and in the Rest of the World (Samsung, Novartis, Roche, Huawei). The ranking is completed by a Japanese company (Toyota). Looking at the main sector of activity of the top R&D investors, three of them operate in the pharmaceutical and biotech sector, four are ICT (hardware and software) giants, two are car makers, and one belongs to the Electronic & Electrical Equipment sector.

Top R&D investors EU

Among the top 10 R&D investors located in EU countries, the majority of them (six) are located in Germany, two in the UK, one in France and one in Italy. Not surprisingly (given the importance of the car industry in Europe), five belong to the automotive sector (Volkswagen, Daimler, Robert Bosch, BMW, Fiat Chrysler), four are pharmaceutical and biotech companies (Sanofi-Aventis, AstraZeneca, Bayer, GlaxoSmithKline), while the remaining one (Siemens) operates in the Electronic & Electrical Equipment sector.

Part 4 of 7

TOP R&D INVESTORS - INVESTMENTS SHARE BY MAIN WORLD REGION

TOP 2500 R&D investors worldwide

The relative majority of the top R&D investor companies are located in the US (837), followed by the EU (590), Japan (356) and China (327). Focusing the attention on the amount of R&D invested, the US based companies still lead the rank. The distribution at country level in the EU shows that Germany, France and the UK are those where the majority of R&D invested is concentrated. Focusing instead on the Rest of the World group, Switzerland, South Korea and Taiwan are the leading countries in terms of share of R&D invested.

Part 5 of 7

R&D INVESTMENTS AND NET SALES TRENDS

Annual growth rate

R&D investment and net sales trends over the last 8 years show similar profiles for the EU, US and Japan. In all cases it’s clearly identifiable the effect of the financial crises both on R&D and net sales. R&D investment growth rates seems to have recovered to levels are close to pre-crises level. Chinese companies’ spectacular R&D growth has slowed down in the past years, but still remains impressive. Net sales growth rates show a decreasing trend everywhere, especially from 2012 onward.

Part 6 of 7

R&D INVESTMENTS BY SECTOR (2007 vs 2015)

Sectoral patterns

Between 2007 and 2015, R&D investment grew in all geographical areas considered, totalling a companies' R&D world increase of 49.1 %. For EU companies, the main R&D increases were in low (67.8 %) and medium-high (61.0 %) R&D-intensive sectors. For US companies, the main increases were in high (68.7) and medium-low (56.7 %) R&D-intensive sectors. For Japanese companies, the main R&D increases were in medium-high (13.7 %) and medium-low (2.7 %) R&D-intensive sectors. For companies based in China, the main R&D increases were in medium-low and high R&D-intensive sectors.

Part 7 of 7

R&D INVESTMENT, NET SALES AND R&D INTENSITY (KEY SECTORS)

R&D comparison EU-US

US-based companies tend to invest much more than their EU-based counterparts (with the exception of the automotive sector). While the gap is modest in the Pharmaceutical sector, it becomes rather consistent in Biotechnology and ICT related industries. Looking at the R&D intensity (the ratio between R&D invested and net sales), we find that the gap in R&D investments in key sectors like Biotechnology or ICT related industries is not due to a different propensity to invest, but rather to the significantly different size of these sectors on the two sides of the Atlantic. In fact, the US has about 3 times more companies and 3 times more R&D investment than the EU in high R&D-intensive industries such as Health and ICT. However, the US has only 36% more total R&D than the EU in the Scoreboard.

© EU 2016 | EU Scoreboard | Sources: The 2016 EU Industrial R&D Investment Scoreboard, European Commission, JRC/DG RTD